Highlights

Second meeting of the Capital Market Committee on January 13, 2021 the capital market in the service of economic recovery : 13/01/2021

Second meeting of the Capital Market Committee on January 13, 2021 the capital market in the service of economic recovery

Mr. Mohamed Benchaaboun, Minister of the Economy and Finance and the Reform of the Administration, chaired on Wednesday January 13, 2021 at the headquarters of this Ministry the second meeting of the Capital Market Committee (CMC), held by videoconference.

The agenda of this meeting focused on the restitution and validation of the recommendations of the working groups set up within the Committee, namely:

  • Measures to develop the private debt market;
  • Actions to strengthen the financing of SMEs and start-ups;
  • Consolidation of the interventions of all stakeholders in an integrated strategy for the development of the capital market.

The Minister emphasized that these recommendations must ensure, as a priority, the support and financing of the national economic recovery plan. In this regard, he recalled the Guidelines given by His Majesty the King, may God assist him, delivered during his Speeches of 29 July and 9 October 2020 which announced the establishment of the Mohammed VI Fund for Strategic Investment, underlining the recent adoption of the law establishing this fund and the need for all players in the capital market to support this dynamic.

At the end of this meeting, and taking into account the context of recovery, it was agreed as follows:

  • Structuring the recommendations so as to separate between actions that can be deployed in the short term, and able to support the recovery plan, and medium / long term actions for market development.

 

It should be noted that these recommendations include the encouragement of a rating system for companies, the simplification of conditions and the reduction of the cost of access to the market, particularly for SMEs, the development of innovative financing solutions. relying in particular on securitization, the promotion of the role of the private equity sector for the financing of companies' equity, the reform of the framework governing public limited companies to introduce new categories of transferable securities and strengthen the protection of bondholders, the development of alternative financing solutions such as crowdfunding as well as the improvement and extension of the range of financial instruments to strengthen the depth and liquidity of the market;

  • Given that several recommendations require the adoption of legislative texts, the launching of a reflection on the adoption of a legal device allowing the acceleration of legislative reforms in the financial sector. In this regard, the preparation of an enabling law on financial and monetary legislation has been proposed;

 

  • The initiation of a coordinated communication action to consolidate confidence in the fundamentals of the capital market and its role in financing the economy.

In order to follow up on these recommendations and put in place an institutional mechanism in this area, the committee has decided to create an executive committee chaired by the Treasury and External Finance Department, which will oversee the implementation of the orientations and recommendations of the committee.

The meeting was attended by the Director of the Treasury and External Finance, the President of the AMMC, the President of the General Confederation of Enterprises of Morocco, the Chief Executive Officer of Bank Al-Maghrib, the Chief Executive Officers of Attijariwafa Bank and BCP, the Chief Executive Officer of Maroclear, the Chairman of the Board of Directors of the Stock Exchange, as members of the Committee, the Directors General of the Foreign Exchange Office, Casablanca Finance City, the Casablanca Stock Exchange and the Moroccan Federation of Insurance and Reinsurance Companies and the Chairmen of the professional associations of the capital market (APSB, ASFIM and AMIC).